Interim Report

A REPORT ON BUSINESS IMMERSION
AT
ARECANUT PROCESSING AND SALES CO-OPERATIVE SOCIETY, SAGAR
SUBMITTED TO R V INSTITUTE OF MANAGEMENT (AUTONOMOUS INSTITUTION AFFILIATED

TO BCU) IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
SUBMITTED BY
SHREYAS G A
REG. NO: P18FW21M0023
UNDER THE GUIDANCE OF
CHIDANANDA M PROF. CHANDRAN A
SUPERVISOR ASSISTANT PROFESSOR
ARECANUT R V INSTITUTE OF
PROCESSING AND MANAGEMENT
SALES CO-OPERATIVE
SOCIETY
RASHTREEYA SIKSHANA SAMITHI TRUST®

RV INSTITUTE OF MANAGEMENT
CA 17, 26 Main, 36th Cross, 4th T Block, Jayanagar
Bengaluru, Karnataka 560 041
(Autonomous Institution Affiliated to BCU)
Year 2022-23
DECLARATION
I, hereby declare that the Report on Business Immersion at ARECANUT

PROCESSING AND SALES CO-OPERATIVE SOCIETY LTD, SAGARA
submitted in partial fulfillment of the requirement for the award of the degree of
Master of Business Administration is my original work under the guidance and
supervision of (internal guide name) (designation) RV Institute of Management
This report has not been submitted to any other institution or university for the award
of any other degree or diploma or any other similar titles.
Date: SHREYAS G A
Place: Bangalore Reg. No: P18FW21M0023

ACKNOWLEDGEMENT
Any achievement, be it scholastic or otherwise does not depend solely on the

individual efforts but on the guidance, encouragement and cooperation of
intellectuals, elders and friends. A number of personalities, in their own capacities
have helped me in carrying out this project work. I would like to take this
opportunity to thank them all.
I also wish to express my sincere thanks to our director sir Dr. PURUSHOTTAM
BUNG for his inspiration and support at various stages of the project.
I would like to thank the management and the team of ARECANUT
PROCESSING AND SALES CO-OPERATIVE SOCIETIES LTD. for their
continuous support and hospitality extended to me during the tenure of my project
work. The incredible encouragement, moral support and motivation were very
helpful, which was the key to this challenging project endeavor.
I would also like to take this opportunity to express my sincere gratitude to internal
guide PROFA. CHANDRAN, Assistant Professor, RVIM, for giving me the
opportunity to undertake this project and giving me valuable guidance during the
various stages of development of this project and in optimizing the report and
making this project a success.
SHREYAS G A
P18FW21MOO23
ORGANISATION CERTIFICATE
GUIDE CERTIFICATE
This is to certify that SHREYAS G A bearing Register Number

P18FW21M0023, student of II semester MBA Programme has
satisfactorily completed the Business Immersion programme
and prepared the Report under my guidance and supervision.
This Business Immersion Report has not been submitted to any

other institution or university for the award of any other degree
or diploma or any other similar titles.
Date: PROF. A CHANDRAN

Place: Bangalore ASSISTANT PROFESSOR
COLLEGE CERTIFICATE
TABLE OF CONTENTS
CHAPTER
PARTICULARS PAGE NO
NO
EXECUTIVE SUMMARY i
1 ABOUT THE FIRM 1-16
2 ABOUT THE INDUSTRY 17-31
3 ABOUT THE FUNCTIONAL AREAS 32-38
4 FINANCIAL PERFORMANCE ANALYSIS 39-44
5 PROBLEM MAPPING AND SOLVING 45-54
6 FINDINGS, SUGGESTIONS AND LEARNINGS 55-56
7 REFERENCES 57
8 ANNEXURE 58-70
LIST OF FIGURES
FIGURE NO. DESCRIPTION PAGE NO.

1.1 ORGANISATION STRUCTURE 5
1.2 SWOT ANALYSIS 6
1.3 MCKINSEY 7S MODEL 8
1.4 SOFTWARE INTERFACE 12
1.5 CHIPPSAPP USER MENU 12
1.6 TRADEAPP 13
1.7, 1.8 COMPANY BUILDING 16
2.1 PORTER’S FIVE FORCE MODEL 27
3.1 TENDER PROCESS 36
3.2 BILL 36
3.3 WEIGHING PROCESS 37
3.4 GODOWN 37
3.5 FERTILIZERS 38
5.1 VARIETIES OF ARECANUT PRODUCT 52
5.2 PEST DISEASES 53
5.3 YELLOW LEAF DISEASE 53

LIST OF TABLES
TABLE NO. DESCRIPTION PAGE NO.

1.1 COMPANY BRANCHES 2
1.2 BOARD OF DIRECTORS 4
2.1 SECOR-WISE NUMBERS OF 29

COOPERATIVES
4.1 BALANCE SHEET 39
4.2 P AND L ACCOUNT 39
4.3 TREND ANALYSIS OF P AND L ACCOUNT 42
4.4 TREND ANALYSIS OF BALANCE SHEET 43
TABLE OF GRAPHS
TABLE NO. DESCRIPTION PAGENO.
2.1 SECTOR-WISE NUMBERS OF 30

COOPERATIVES
A REPORT ON BUSINESS IMMERSION AT ARECANUT PROCESSING AND SALES CO-OPERATIVE SOCIETY, SAGAR
EXECUTIVE SUMMARY
The report gives a detailed study of the business immersion into the workplace culture
at APSCOS LTD. SAGAR conducted for a period of fourty days. The primary goal of
the study is to determine whether or not internships are a required component of MBA
academic curricular. Through a series of interventions, internship is the motivation to
bridge the gap between knowledge and its application. This will allow MBA students
to gain experience and present it to employers. The 6-week internship has been
scheduled for the second semester of the MBA programme in order to serve the dual
goals of giving students crucial insight and supplying business with graduates of the
highest standard who are prepared to succeed in the world from day one.
The report includes a brief history, management committee, McKinsey 7s model,
Porter’s five force model, SWOT analysis, company’s industry analysis, financial
analysis of the company. Moreover it also includes problem statement analysis and
also provides suggestion and learning experience of working in the company.
i
CHAPTER 1:
ABOUT THE FIRM
Brief history of the firm:
Arecanut Processing And Sales Cooperative Society, Sagar (APSCOS) is a co-operative

society established in the year 1973 in accordance with Regulatory Body Of Cooperative
Societies, Bangalore.
The company started its working on 03/12/1973 to provide a marketplace for arecanut
growers and traders where they can sell and buy the products at a competitive price.
In 1973 several embers thought of forming a the cooperative society with a capital of
Rs.25000. In the beginning it had 472 members in the company. The founder chairman of the
company was Shri L T Timmappa Hegde.
The society has its branches in Nittur, Tumari and Hosanagara.

The company has a total of 17 members as directors complying to the rules of Karnataka state
cooperative regulations.
APSCOS works under the state government marketing board for agricultural products viz.
APMC( Agricultural Produce Market Committee) and all the process is being held under the
supervision of the same.
At present the president of the company is Mr. K.M.Suryanarayana and

Mr.A.O.Ramachandra is the vice-president of the company.
At present the total members of the company has grown to 5985 members and has a capital
share of Rs. 1,49,16,200. There are more than 25 employees in the company.
The company will be celebrating the GOLDEN JUBILEE in the year 2023 and a new office
building is being constructed which is estimated to be finished within that time.
Vision:Vision of APSCOS is spreading its operations to district and state market and by that
creating a demand for the products of member.
Mission:
It has a mission of launching many projects to recover the quality of service given to the
members of the society and to diversify its business by introducing different products and
service areas to the members and the public.
Quality policy:
Company can provide the good quality product & service to the customer. Producer when sell
the product in to society than credited amount in to his account. They can provide the van
facility to the producer to transport the product to society.
R V INSTITUTE OF MANAGEMENT
Operational area of business:
The company has its main branch in the APMC yard of Sagar where all the managing and
monetary decisions and transactions are taken place.
The tender process of Sagar, Tumari and Nittur branches are held at the main branch of the
company but tender process of Hosanagar branch is held there itself as the transportation and
other maintenance process will be costly and hard to follow up.
Main Branch Sagar

Sagar Sub-Branch Tumari
Sagar Sub-Branch Nitturu
Sub-Branch Hosanagar
Super Market Sagar
Services offered:
Marketplace:
The Company provides a marketplace for the selling and purchasing of arecanut and pepper
products at a competitive price. It provides necessary storage place for the farmers goods until
their product is sold to the bidder. It provides free storage service for few months and after
that charge interest to the traders who have bought the product in the auction process.
Loans:
The society provides loan facilities to its ‘A’ class members who have constantly making
transaction in the company with interest regulated by cooperative laws. While taking the loan
the applicant has to provide necessary documents of land for surety and then the application is
processed by the board of directors and they will take the decision whether or not to provide
the loan to the applicant.
Another special service given by the society is that the company will give the farmers loans
based on the product they have stored in the company for tender process. They provide
interest free loans for the 75% of the market price of the goods the farmers have admitted to
the company.
The company gives a compensation of Rs.100000 to the layman of farmers if anything

happens to them while cultivation of the arecanut products. Also the company has tied up
with 2 hospitals which give discounts for the medical checkups and treatments.
On the occasion of the death of any member of the company who have purchased the shares,
the company gives AFTER DEATH compensation to the families of the deceased to help
them financially n the troubled time.
Products offered:
The society provides various agricultural equipments, fertilizers, fungicides, cattle feed and
Bordeaux mixtures required for the cultivation and yielding of their products at a reasonable
price.
They have opened a supermarket in the city which provides various house hold items and
agriculture related equipments to its members and to the generic public also at a competitive
price.
MILESTONES:
 Society was registered on 09-11-1973.
 Started its activity on 03-12-1973.
 New branch was opened at Nittur in 1978.
 Another branch opened at Hosanagar in 1994.
 New branch was opened at Tuari in 2013.
 Opened paper plant in 1976.
 Opened a new supermarket in Sagar in 2017.
Board of Directors:
MR. B A INDUDHAR DIRECTOR
MR. K S SUBRAO DIRECTOR
MR. P N SUBRAO DIRECTOR
MR. R SHESHAGIRI DIRECTOR
MR. H B KALYANAPPA GOWDA DIRECTOR
MR. H OMKESH DIRECTOR
MR.H K RAGHAVENDRA DIRECTOR
MR.K M SITARAMAIAH DIRECTOR
MS. JANAKAMMA DIRECTOR (WOMEN’S QUOTA)
MS A S NAGARTNA DIRECTOR (WOMEN’S QUOTA)
MR. K M SATYANARAYANA DIRECTOR
MR. M M YUVARAJA DIRECTOR
MR. B GURUPADA DIRECTOR
MR. K M SATYANARAYANA PRESIDENT
MR. A O RAMACHANDRA VICE-PRESIDENT
MR. H N LAMBODHARA SECRETARY
Organizational Structure:
BOARD OF
DIRECTORS
PRESIDENT
SECRETARY
OFFICE DEPT. GODOWN DEPT.
TRADERS AND SHARE AND ACCOUNTS AND

LOAN SUPERVISER
FARMERS DEPT. DEPOSITS VOUCHERS
STOCK
WEIGHING
MAINTAINANCE
FIG 1.1: ORGANISATION STRUCTURE
SWOT ANALYSIS OF APSCOS:
Every company, either big or small, has to make its own SWOT analysis. It is very helpful to
take decision, to measure company’s growth and predicting the future. SWOT analysis means
the way of recognizing the internal and external analysis. SWOT is a 2*2 matrix. SWOT
includes the strength, weakness, opportunities, threats. It has favorable and unfavorable
objective, SWOT gives an idea in decision making process.
FIG 1.2: SWOT ANALYSIS
STRENGTHS:
1) Well established, long history.
2) Expertise of management team.
3) Responsive to member’s needs.
4) Extensive services provided to members.
5) Loyal membership base.
6) There is good reputation for the society in locality.
7) Good governance structure.
8) It is having sufficient financial resources and can invest in my interested areas.
WEAKNESS:
1) The target cannot be fixed due to production fluctuations.
2) Shortage of storage facilities.
OPPORTUNITIES:
1) Expansion into state markets.
2) Investment in integrated machinery (boiling, drying, packing).
3) Product diversification.
4) Financial capacity to respond to member’s needs.
5) Demand exceeding supply for supari items.
THREATS:
1) There may be chances of banning tobacco products which is produced from Areca nut.
2) Increase in labor price for processing of areca.
3) The primary societies may change their loyalty due to several reasons.
4) The government is not giving proper recognition to the co-operative societies.
5) Potential changes to regulation Health concerns of areca nut.
6) External factors influencing price volatility of areca nut.
Application of Mckinsey’s model:

Introduction:This model explains the management model, which was developed by two the
consultants (business) in the year 1980.This model includes seven S’s. In 7S some are soft S
and hard S. The objective is to have improving company’s performance. 7S is used in the
organizational changes, merger of company, having new strategy, future planning. The 7S are
as follows:-
1) Structure.
2) Strategy.
3) Staff.
4) Skill.
5) Style.
6) System.
7) Shared value
The hard elements are,
1. Strategy
2. Structure
3. Systems and
The soft S are,
1. Shared values
2. Skills
FIG 1.3: McKinsey 7S MODEL
3. Staff and
4. Style
STRUCTURE:
BOARD OF
DIRECTORS
PRESIDENT
SECRETARY

LOAN SUPERVISER
STOCK
WEIGHING
MAINTAINANCE
The company has a functional organizational structure where the departments are separated
based on the areas of expertise of the employee.
The delegation of authority and responsibility is implemented properly, and the execution of
the rest of the work is done smoothly. It has a functionnal organizational structure, with
section heads who are directly responsible to the secretary for managing and supervising the
work in their section. There are clerks and assistants in each area who are accountable to their
immediate superiors, and the responsibility for work moves in upward direction.
SYSTEM:
Loan and Deposit SYSTEM:
Deposit control: they will only accept deposits from members who plan to sell their goods
through the organization.
Deposits come in two different varieties.
1) Fixed Deposits
2) Deposits in savings accounts.
APSCOS offers loans to its members at a low, straightforward rate of interest. There is no
"Government Share" in this society. It is lending money to its members from its own fund at a
basic interest rate of 10% per year.
It offers three different loan types.
1) Production loan: a production loan of up to 75% of the current year's total sales or 70% of
the average sales for the previous three years whichever is applied will be provided.
Encumbrances on the member's properties will be noted during loan approval, and members
will be required to provide the assurance of another member. The loan will be paid back in
instalments. The term of this loan is one year. Interest will be assessed on a daily computation
basis once a year. Sometimes interest is paid the same day that the money is credited.
2) Loan pledge: Up to 75% of the market value of the produce maintained in the godown will
be loaned to members.
Loan made as a commitment is this.
3) Deposit loan: Members may also receive loans with deposits. Deposit loans will be
provided at a rate of 70% of the deposit amount plus interest accrued up to that point.
10
System atthe Tender Division
STEPS INVOLVED IN PRODUCT SELLING:
The activities that are a part of marketing are briefly outlined here.
A. Putting the items together:
According to a predetermined method, the product is put together either personally by the
formers in the society's office or through primary societies.
According to a predetermined method, the product is put together either personally by the
formers in the society's office or through primary societies.
B. Weighing:
Once the product has been distributed to society, the weight is measured and recorded to
prevent errors. The owner will be given a copy of this, which he must present upon receiving
the selling note. Following the rough weight being registered on a register and a copy will be
given to the members, the member's name, the quantity of bags, etc. will be written on the
bags as soon as the products arrive.It includes:
 The society's name.

 receipt number
 Date
 Acct. No.
 A member's name
 Variety
 Total bag numbers
 Accurate weight
C.Grading:
The society divides the goods into lots of uniform quality through grading as well as
attributes .
D.Storage
APSCOS offers its members storage spaces to save their goods. It has 7 well
built godowns to keep the items organized.
The company uses software called as TRADEAPP which is provided by CHIPPSAPP

TECHOLOGIES, SHIVAMOGGA, which provides all the necessary interface to maintain
and manage all the functional duties of the company.
11
This software is especially designed for the cooperative societies which deal with stock
maintenance and loan system.
12
FIG 1.4,1.5,1.6: TRADEAPP SOFTWARE
SOURCE: https://chipsapp.com/
13
STRATEGY:
Apart from providing the marketplace for sales of arecanut and pepper the company is
also providing loans and advances to its members.
Now a supermarket has also been opened which provides agricultural and household
items to the public. Through this strategy they are looking to increase their profit and
public reach without compromising in the quality of service and products likewise.
SKILLS:
The employees of the organization must have good communication skills to explain various
problems faced by the farmers and to provide solutions to those problems.
The employees should also be skilled at maintaining the ledger and other accounts and giving
proper documentation for every transaction.
Various kinds of GST and taxes are applied to the goods so the respective employees should
be expert in those topics.
STYLE:
There are three types of communication style according to the
direction. They are
1. Downward communication.
2. Upward communication.
3. Horizontal communication.
In APSCOS following these three types of communication system. The messages will
be sent from downward to upward and upward to downward. There is no restriction to
express their opinions of the employees. They are free to share their opinions with the higher
officers.
Leadership Style:
A leader’s way of providing direction, executing plans, and motivating people is

known as leadership style.
At APSCOS, they follow a very effectible style of functioning.
There is a good cordial relation between the management and the employee which
shows a participatory leadership style.
14
Staff has very good informal conversation that develops sense of loyalty, motive, and
dedication in the employees. President and staff etc. are approachable. Personal
attention to the project trainees helps in creating a good image in the eyes of the
public.
Shared values:
The internal values of the company is manifested by its overall work ethics and corporate
culture. Corporate culture, strong values, and fundamental values are all included.
Shared value objectives are standards and aspirations that go beyond the typical formal
statement of business mission. The workers put a lot of effort into making sure the business
produces high-quality goods and services. The foundational principles around which business
is constructed are as follows. At tss, each employee is committed to helping the company
reach its objectives. A valuable amount of advice and recommendations from the staff,
members, and customers were also used by the organisation. The unfettered transfer of power
from management to employees will be demonstrated by this.
Staff:
The staffs at APSCOS are very well qualified and punctual. There are enough staffs in each
department to complete the given task in the given time. They are qualified to handle the
job efficiently.
15
FIG 1.7, 1.8: BUILDING
Source:https://goo.gl/maps/6i8fftgqPAt5ZL4S6
16
CHAPTER 2:
ABOUT THE INDUSTRY

INDUSSTRY ANALYSIS: COOPERATIVE SOCIETIES
India is home to a singular movement called ‘cooperatives’ which involves citizens

and their democratic involvement at a grass root level. A cooperative society is a
company owned and pass the people and for the people using its goods and
services. Because the name suggests, the people or members of the
organization add cooperation to pool resources for his or her common benefit and
progress. Cooperative societies in India were formed in late 1890s when farmers in
Maharashtra rebelled against money lenders’ tyranny for agricultural loans. In
1904, the British in India forced the Cooperative Society Act, to safeguard interests
of poor farmers in Maharashtra.
After Independence, this ‘cooperative movement’ in India gained momentum. the

govt. realised that the cooperative sector plays a major role in boosting the
agricultural economy. It provisioned for plans for this sector in its series of
development plans Five Year Action Plans. Every village was encouraged to
possess a minimum of one cooperative society. It also helped putting in
place cooperative farms. From agricultural markets, these societies in India expanded
to credit sector, and later to other large-scale sectors, housing and development,
fishing markets, banking, etc. This led to formation of different kinds of co-operative
societies.
Based on the members and also the quite business, cooperative societies in India are
classified mainly as six types. These are explained below.
17
Farming Cooperative Society:

The agriculture sector in India is that the largest sector, the country’s farmers have
to gain profit for his or her produce. Unfortunately, this sector is economically
weaker thanks to several causes, namely indebtedness of farmers, expensive
equipment, agents or middlemen, etc. The farmers put within the capital for
consolidating farming equipment, seeds, fertilisers, etc. They earn more via
cooperative farming as compared to individual farming because the profit is split in
step with their land shares the benefits of cooperative farming societies in India are
more farming output in terms of agricultural produce and profit.
Credit Cooperative Society:
They are the cooperatives which offer financial services to its members like deposits,
short term loans, etc. All those that deposit in these societies are their members. These
societies raise finance with deposits from its members and supply them with short
term loans on an occasional rate of interest. These schemes benefit the members by
protecting them from high-interest rates from commercial banks, which don't always
meet farmers’ or economically weaker sections’ needs. The produce is gathered
together distributed by the cooperative itself, without the involvement of any
middlemen. This establishes an instantaneous producer-consumer relationship. The
buyers of the merchandise will be its members or non-members or the
final public furthermore.
Consumer Cooperative Society:
These cooperatives are formed by consumers for obtaining household goods at an

affordable price. The consumers for such cooperatives buy the products in bulk to
scale back the value and sell them to its members (and non-members also) at lower
prices. Buying and selling in bulk also offer discounts on the costs, one more benefit
to consumers. These cooperatives founded stores for selling all products under one
roof as an example, Apna Bazaar may be a consumer cooperative in India.
Marketing Cooperative Society:
Rather like farming cooperatives support farmers for pre-farming requirements,

marketing cooperatives support them for marketing or selling their produce. These
cooperatives help farmers to sell their produce at profit. They also make services sort
of a sale platform, cold storage, grading of the produce, etc. available to the farmers.
Fruits, vegetables, cotton, and sugarcane cooperatives are the most important and
most demanded marketing cooperatives.
Housing Cooperative Society:
18
Housing may be a big issue for the mortal in cities and towns with skyrocketing prices
of land. In such a situation, people form cooperatives to shop for the land, construct
houses, and sell them to the members. To become part of the cooperative, a member
either must buy a house or buy shares within the cooperative.
CHARACTERISTICS OF COOPERATIVE SOCIETIES:

Cooperative societies follow democratic principles of equality. It's made for mutual
help within the first place. those that aren't financially stable can be a part of
those cooperatives and head towards a standard goal. Some characteristics of
cooperative societies in India are mentioned below.
Voluntary Formation and Participation: Becoming a member of a cooperative is

incredibly easy and free. Entry into and exit from a cooperative society may be
a voluntary process.
One vote per member: Cooperatives run on principles of democracy. Every
cooperative features a head managing committee, members of which are elected by
common members.
Independent body: A registered cooperative society is recognized as an independent

entity by the govt. of India. It can make its own decisions for the advantage of its
members.
Mutual benefit: Cooperatives are always advantageous for people from the
center and low-income brackets. they assist one another achieve higher profits than
their normal incomes and establish mutual trust among them.
No financial risks:Cooperatives operate mainly on the idea of money and direct

transactions. Credits, except financial cooperatives, don't seem to be provided by
others. This protects them from losses because of bad loans. Hence, cooperatives are a
decent choice to avoid financial risks.
Objective: The principal aim of cooperative societies is to assist people tide through
financial situations and gather support and assistance from nearby communities. This
strengthens community relationships.
Distribution of Profits: the excess produce or profits generated within

the cooperative sector is distributed amongst its members rightfully consistent
with their shares.
Professional Management:All cooperatives are purported to be managed

democratically and professionally. Audits must be performed periodically.
Promoting cooperatives for the holistic economic welfare of their members and non-
19
members alike is required. A cooperative society is extremely significant in

voicing the strain of its members in an exceedingly broader market and makes the
members self-sufficient. It develops social trust, an all-inclusive socio-economic
advancement, and therefore the tendency of helping communities.
LAWS GOVERNING COOPERATIVES IN INDIA:
Cooperatives play a significant role in democracies and also the creation of a state.
Article 19 of the Indian Constitution mentions that the right to create cooperative
societies is pivotal to the citizens and recognizes it as a Fundamental Right. The
Indian government has always encouraged the formation of cooperative societies. As
a result, the Central and State governments have passed laws to market and govern the
sleek functioning of co-operative societies in India. a number of the key laws are
mentioned below:
The Co-operative Societies Act, 1912:

The Co-operative Societies Act, 1912 was passed to amend the prevailing law on co-
operative societies. It also aimed to facilitate the formation of co-operative societies to
encourage savings and self- help among agriculturists, artisans and persons of limited
means. The Act contains provisions referring to registration of co-operative societies
and requirements for the identical, their powers, duties, similarly because the powers
and duties of its members. It also lays out the specifications for audits of the society,
utilizations and restrictions on loans, and lots of more such regulations. a number
of the key provisions are explained below:
Registration: The Act mandates that each society should contain not but 10 members
above the age of 18 years. If the Registrar is satisfied that a society has satisfied
all the foundations and regulations, he may register the society. A certificate of
registration signed by the registrar, is provided as evidence of registration. The word
“limited” shall be the last word within the name of each society. Further, any
amendment to the by-laws, the governing documents of the society, shall be
forwarded to the Registrar by way of an authorized copy of the identical.
Rights and Liabilities of Members: Societies generally follow the principle of ‘one
member one vote’, whereby the member will have only vote no matter the amount of
shares held by him. The Act states that where the members’ liability isn't limited by
shares, the principle of ‘one member one vote’ applies. However, where the liability is
proscribed by number of shares, the concept of ‘one share one vote’ applies. Members
may exercise their rights only after making payment to the society for acquisition of
interest.
20
Duties of Societies: The Act imposes certain rights on registered societies. Every
registered society shall have an address and any change shall be notified to the
Registrar. Societies shall keep the copy of this Act, bye-laws and other important
documents, open for inspection, freed from cost, in any respect reasonable times at its
address. The Registrar shall audit or cause to be audited, the accounts of
each registered society, which is able to include valuation of assets and liabilities,
examination of overdue debts, etc.
Privileges of Societies: Registered Societies enjoy privileges like perpetual
succession, power to carry property and enter into contracts and to try and do all
things necessary for the needs of its constitution. Any profits is also distributed only
after setting aside a little as reserves. Further, the govt may exempt certain societies
from revenue enhancement, taxation and registration fees.
The Multi-State Cooperative Societies Act, 2002:

An act to control such multi-state cooperatives was passed in 2002 by the title of
Multi-State Cooperative Society Act, 2002. This Act was introduced by the Ministry
of Agriculture in 2002. The Act was passed to amend the laws referring to co-
operative societies whose objectives don't seem to be confined to one state, to
encourage formation of such cooperatives, to enable them to their economic and
social betterment and to produce functional autonomy. This Act helped reduce the
compliance burden on multi-state co-operative societies by reducing the laws and
rules they have to fits. The Act extends to the full of India. just like the Co-operative
Societies Act, 1912, this Act includes provisions on registration of multi-state co-
operative societies, conversion of co-operative society to multi-state co-operative
society, rights, duties and liabilities of societies and their members, direction,
management, and privileges enjoyed by societies, similarly as provisions for
amalgamation and liquidation. a number of the key provisions are mentioned below:
Registration:Multi-state co-operative societies will include not but 50 members or

two co-operative housing societies from two or more states. The Registrar, appointed
by the Central Government, may accept the applying, within four months;
provided he's satisfied that the appliance meets all the foundations and regulations. He
will then provide the registration certificate as evidence of registration.
Bye-laws: The bye-laws shall include details of the society like name, address, area
of operations, objects, membership details including the procedures for obtaining,
transferring and withdrawal, rights, duties and liabilities of members, details of capital
contribution, and so on. just like the previous 1912 Act, any amendments to the bye-
laws could also be gone along a minimum two-third majority of members present and
voting, and should be notified to the Registrar, who has the ability to register the
identical. The amendment shall be held valid only after registration.
21
Limited Liability: Unlike the 1912 Act, multi-state co-operating societies is

also registered given that its members have financial obligation. This acts as a
protection to the members.
Membership: Individuals is also admitted as members provided that they satisfy the
prescribed criteria. The member may exercise his rights, only after payment to the
society for his membership interest. Societies may accept someone as a nominal or
associate member. Further, societies also must organise education programmes for its
members, directors and employees. Multi-state cooperative societies must follow the
principle of ‘one member one vote’. A society also has the powers to expel a member
for acts detrimental to the society by a majority of not but two-thirds of members
present and voting, and he shall not be eligible for re-admission.
Board of Directors: The Board of Directors consists of directors elected by the
Members in an exceedingly general meeting. the quantity of directors is
mentioned within the bye-laws and shall not exceed
21. The Board has several powers to further the interest of the society like buying and
selling property, raising and investing funds, audit, and so on. The Board appoints a
Chairperson to go the meeting. Further, the Board also appoints a Chief Executive
who shall take care of the day-to-day management of the society.
Meetings: An Annual General Meeting (AGM) of Members is held per annum,
wherein Members may meet and discuss on certain topics. A Special General
Meeting is also called by the Board of the society to debate any matter which can’t
wait until the subsequent AGM. The auditor will have a right to attend general
meetings. Besides this, the Board of Directors must meet quarterly
REASONS BEHIND THE SUCCESS OF INDIAN COOPERATIVES:
Economic growth and therefore the increase in disposable incomes have played a very
important role within the growth of cooperatives in India. However, there are reasons
on the micro level like certain decisions, good execution, policies and procedures,
among others, which are the key reasons behind the success of cooperatives. a number
of the explanations behind the success of cooperatives are analysed as follows:
Focus on Quality:“We always test the milk in collection centres. If any adulteration
is found, we add red colour to that so the farmer cannot sell it anywhere else.
Similarly, we use Gas Chromatography to check the purity of ghee.” said Dr. RS
Sodhi, the manager of Amul. Initiatives like these at AMUL have created incentives
for farmers to enhance the standard of the products they provide to
Amul,target quality implies that the merchandise quality is best. This helps in building
customer confidence and makes customer retention easier.
Professional Management:Cooperatives, being democratic entities in nature,

22
have the chance to elect an expert and experienced management. the

foremost successful cooperatives in India are go by knowledgeable management. Mr.
VergheseKurien, the daddy of the White Revolution in India, believed that only
professional management can bring visible socio- economic changes to underserved
pockets of rural India. He has founded two training institutes namely, the Institute of
Rural Management Anand (IRMA) in 1979, which aimed toward creating a
replacement generation of professional managers to serve rural India and also
the Vidya Dairy in 1994, which provides training to B.Tech (Dairy Technology)
students and become dairy industry professionals. IFFCO also benefits from an
expert and independent management. an honest management can lead an organisation
to success.
Innovation: Innovation plays a vital role within the success of Indian cooperatives.
Mr. RS Sodhi of Amul says “Innovation is that the key to our success.” Amul has
added 102 new products within the past four years. Of these, 48 were launched within
the last two years, exceeding the target of launching two new products monthly.
IFFCO, together with WOW Go Green, organised a 10-day, rigorous training
programme on the usage drones in farming. there have been 36 participants who
included farmers, entrepreneurs, cooperatives, etc and also the training was
conducted ranging from simulators to small drones to full size agricultural drones.
Agricultural drones are highly helpful in making agriculture more efficient. A 15-
minute flight can spray fertiliser in a vicinity of two.5 acres. The increased adoption
of drones is predicted to assist save farmers’ time and energy and increase their
income.
Importance of Branding and Marketing: Branding and effective marketing have

played a crucial role within the success of cooperatives. Amul is known for its Amul
Girl mascot which the corporate advertises in respect to recent events. The Amul Girl
ad was launched in 1947 and has claimed an area within the Guiness Book of World
Records because the longest running outdoor cause. Further, Amul features a vast
product portfolio consisting of several dairy products under the identical brand. Thus,
newly-launched products get pleasure from the trust and customer confidence enjoyed
by the ‘Amul’ brand. Many cooperatives have recognized the importance of branding
and marketing and thus, are focusing more on maintaining a decent brand image
and concluding better marketing campaigns.
Social Relevance: A study by the researchers VergheseKurien Centre of Excellence

(VKCoE) at the IRMA revealed that social relevance played a vital role within
the success of dairy cooperatives. These cooperatives have remained socially relevant
even after five decades. consistent with Prof. Shyam Singh, a social sciences
professor who was one amongst the people that conducted the study, some dairy
cooperatives are over 60-70 years old and became social entities, forging strong
23
community ties. He added that dairy cooperatives participate in community

affairs like festivals, donate food, contribute
monetarily and non-monetarily in cultural and social functions in villages and help
farmers in distress through loans. Many cooperatives participate within the local
activities and festivals within the villages and towns, they operate in. they
supply help within the type of training and/or education to their
stakeholders like suppliers, workers, or customers, which result in better quality and
cheaper raw materials and better worker productivity and satisfaction. they'll also
provide financing to the distressed villagers.
IFFCO has organized farmer education programs which include farmer meetings, soil
testing campaigns so on, to enhance farming techniques.
Government Support:The government has initiated various reforms to assist the

Indian cooperatives. Such reforms include forming the Ministry of Cooperation,
reducing compliance burden, providing training, and so on. A announcement by PIB
stated that “the Ministry of Cooperation will provide a separate administrative legal
and policy framework for strengthening the cooperative movement within
the country. it'll help deepen Co-operatives as a real people-based movement reaching
up to the grassroots. In our country, a Co- operative based economic development
model is incredibly relevant where each member works with a spirit of responsibility.
The Ministry will work to streamline processes for ‘Ease of doing business’ for co-
operatives and enable development of Multi-State Co-operatives (MSCS). The
Ministry of Cooperation is headed by Mr. Amit Shah, who also acts because
the Home and Union Minister. In November 2021, he asked the management of
Amul to figure out the same model for organic farming and to encourage farmers to
adopt the practice. this may reduce the overuse of fertilisers which is causing soil
degradation and chronic diseases like cancer.
Further, the govt has organised training programmes through various entities, to
assist cooperatives become more efficient in conducting their operations. Among such
entities are the National Cooperative Development Corporation (NCDC), which was
established by an Act of Parliament in 1963 under the Ministry of Cooperation and
therefore the National Council for Cooperative Training (NCCT), which is registered
as an autonomous society under the Societies Registration Act, 1860 promoted by
Ministry of Cooperation, Government of India. NCDC’s functions include planning,
promoting and financing programmes for production, processing, storage,
marketing and then on. The NCDC Act was amended to permit NCDC to
help cooperatives through financing various projects directly or indirectly by
advancing loans and grants to the State Governments who will then finance
cooperatives. NCCT, on the opposite hand, is to blame for organizing, directing,
24
monitoring and evaluating the arrangements for cooperative training for the personnel
working in cooperatives.
The main objective is to organise need based training programme and facilitate the
method of human resource development for cooperatives in India.
CONCLUSION:
The cooperative movement has played a major role in development of the weaker
sections of the society. Since its inception within the early 1900s cooperatives in India
have grown significantly. India has over eight lakh registered cooperatives. IFFCO
and GCMMFL are within the top three positions globally within the list of top 300
cooperatives supported the ratio of turnover over GDP per capita, and within
the agriculture and food industries segment. Other cooperatives, too, have grown
significantly. Cooperatives have succeeded because of factors like professional
management, specialise in branding and innovation, social relevance, and so on.
Cooperatives are known for helping its stakeholders like its members, suppliers,
consumers and workers.
Further, as cooperatives play a key role in rural India, their success has also led to
improvement within the standard of lifetime of many villagers. Thus, it's evident that
the success of cooperatives in India is additionally contributing to the expansion and
development of Indian economy.
25
Major Competitors:
 The Central Arecanut and Cocoa Marketing and Processing Co-operative
Limited (CAMPCO):CAMPCO has been functioning effectively with the main
objectives of Procuring Areca nut and Cocoa grown by member cultivators and, if
necessary, from other growers on an agency or outright purchase basis. The Sale of
Arecanut and Cocoa and their products to the best advantage of members and
advance loans to members on the pledge of goods and do all other things necessary to
carry out the objective. To promote and develop Areca and Cocoa cultivation,
marketing and processing.
 The Malnad Areca Marketing Co-operative Society Ltd: It is popularly known as

“MAMCOS”, while establishing it under the leadership of Mr S. Sheshadri, the then
Deputy Commissioner of Shivamogga (on 08-11-1939), with the intent of
safeguarding the Arecanut growers, there were only 659 members and 5121 bags of
Arecanut were collected. The society started with a capital of Rs. 16,031 earned a net
profit of Rs. 3867 in the year of starting and was able to declare dividend at the rate
of 6.25%. “MAMCOS” has come up a very long way since then with a membership
of about 19500 and a strong financial base. From start till now the society is working
under profit and declaring dividend every year.
 The Totagars' Co-Operative Sale Society(TSS): TSS which has its main branch in
Sirsi has many offices in the district of Uttara Kannada is a major competitor in the
field of arecanut and pepper products in the region.it also has supermarket, hospital,
agricultural products market, Hotels etc.
Major suppliers:
The major suppliers of areca and pepper products are farmers itself who grow and try to sell
their products in the market.
Major buyers:
The buyers of the products for the society are companies like CAMPCO AND Karnataka
Rajya AdikeMarataSahakara Mandala Ltd.
But majority of the buyers include local traders and private companies who come from
nearest districts.
Major substitutes:
For the farmers of this region there are no proper substitutes as they don’t hose crops don’t
give yield and profit as much as arecanut and pepper product gives. Arecanut is the main
cultivation crop of this region and hence there isn’t any substitute product.
26
Porter’s Five Force model
FIG 2.1: PORTER’S FIVE FORCE MODEL
Introduction:
Porter’s Five Force model Five Force model is way in which completion of business can be
analyzed. Five Forces goes with the micro as well as macro environments. It is like a SWOT
analysis Model is used mostly in new business entering in industry sector. Model was in
1979.strategies for success are differentiations, focus, alternatives, cost leadership.
1) Threat of new entrants:
Threat of new entrants this force determines how easy (or not) it is to enter a particular industry. If an
industry is profitable and there are few barriers to enter, rivalry soon intensifies. When more
organizations compete for the same market share, profits start to fall. APSCOS has a history of almost
50 years and has gained the trust of farmers in the region. The room for new entrants is very small as
there are many such societies and companies have already established a healthy root in the industry.
2) Bargaining power of suppliers:
Bargaining power of supplier’s is the power of suppliers over the company. It includes raw materials,
labor, and services. Bargaining has directly affects the buying company’s profits. There is no much
bargaining can seen in APSCOS by its suppliers because suppliers of the products are farmers in the
market. They don’t have any bargaining capacity. For the society’s Super market section also the
bargaining capacity of suppliers is low as there are many companies ready to give supply of materials
and product at a reasonable price.
3) Bargaining power of buyers:
The bargaining power of buyers is also low with regard to the society as there are many
number of traders and companies coming for the tender process and they compete with
themselves for the product at a profitable price. The society do not get involved in the process
and acts only as a middleman between farers and traders of aracanut and pepper.
27
4) Threat of substitutes:
Threat of substitutes is very low as there are no substitute product available in this region which is
more profitable than aracanut and pepper. So the threat of substitute product is low for this company.
5) Rivalry among existing competitors:

In this force how the profitable and competitive an industry is the major aspect. Rivalry is intense
when there are too many competitors, growth of industry is slow, high exit barriers, and loyalty of
customer is low, equal size of competitors, no differentiation in products. APSCOS has many
competitors like CAMPCO, TSS and MAMCOS etc. The rivalry among the existing companies is very
high.
SECTOR OVERVIEW:
28
Cooperatives in India are broadly present in credit and non-credit sectors. There are
seven varieties of cooperatives under the credit sector including state cooperative agriculture
and rural development banks, state cooperative banks, district cooperative central banks,
employee thrift and other credit societies, urban cooperative banks, primary cooperative
agriculture rural and development banks, and first agricultural credit societies (PACS). The
non-credit sorts of cooperatives include all others like Tribal/SC-ST, service sector, women,
multi-state, multipurpose, consumer, housing, industrial cooperatives, etc. Overall, housing
and dairy sectors have the best number of cooperatives.
Sectors Number Percentage
Housing 152351 17.83%
Dairy 151956 17.79%
Primary Agricultural Credit Societies (PACS) 97961 11.47%
Employee thrift and other credit 76997 9.01%
Labour 46953 5.50%
Agro-allied/agro-processing 29901 3.50%
Consumer 26355 3.08%
Fishery/aquaculture 23670 2.77%
Women 21493 2.52%
Others* 226718 26.54%
TABLE 2.1: SECTOR-WISE NUMBERS OF COOPERATIVES
SOURCE: INTERNATIONAL COOPERATIVE ALLIANCE
29
PERCENTAGEOFCOOPERATIVESPERSECTOR:
Housing
Dairy
Primary Agricultural
17.83% Credit Societies (PACS)
26.54% Employee thrift and other

credit
Labour
17.79%
2.52% Agro-allied/agro-
processing
2.77%
Consumer
3.08%
11.47%
3.50%
Fishery/aquaculture
9%
5.50%
Women
Others*
GRAPH 2.1: SECTOR-WISE NUMBERS OF COOPERATIVES
SOURCE: INTERNATIONAL COOPERATIVE ALLIANCE
30
CHAPTER 3:
ABOUT THE FUNCTIONAL AREAS
FUNCTIONAL AREAS OF THE ORGANISATION:
BOARD OF
DIRECTORS
PRESIDENT
SECRETARY

LOAN SUPERVISER
STOCK
WEIGHING
MAINTAINANCE
31
Loan section:
The loan section of the society focuses on the distribution and collection of loan amounts by
its members who have taken it and have applied for the loan.
The aspirant has to give an application to the loan section wherein he has to give few of his
personal details and has to provide land records ha/she has owned.
The head o the section will check the records for any previous loans they have taken and
whether they have paid it or not. The land records also show whether he has previously taken
any loans from other institution.
After receiving the loan application the application is presented in a meeting of the board of
directors where they will decie whether they should give loan to the applicant or not
depending on the amount required and the records he/she has given.
It also depends on whether the society has proper funds as the cooperative societies must
abide by the states rules and regulations.
They should also collect the repayment of loans they have given and on the occasion of
failure of payment they go to the houses of those who have taken the loans to give notice to
them to pay their loan amount.
Traders and farmers department:
Traders section: This section gives the documentation of the delivery of goods the traders
have acquired in the auction. This section should also collect the amount traders should give
through cheque’s and online bank transfers. The traders should pay the CGST and SGST on
whatever product they have purchased. They should pay 2.5% of each CGST and SGST on
the foods they have purchased.
Traders should create an account in the society by giving proper documents and giving a
deposit amount fixed by the company.
For the transportation of goods for the traders they should have proper documentation for the
goods they are carrying. So this section gives E-WAY BILL which is acquired by the
government portal. In the case of any checking in the road by government authorities, the
traders must show this bill. This bill has all the documentation of what and how much goods
they are carrying in their vehicles.
This section also should provide calculations for TDS and TCS for the payments done by the
traders.
Farmers section: This section provides information regarding their products which are in the
godown. It also provides information about the money they have in the APSCOS account.
The society gives passbook to its members just like bak passbooks where they can entry their
goods and money calculations and other details regarding their account.
They can take the money they have in their account in the form of cash or through bank
transaction online which will be made directly by the secretary through the company bank
account.
Farmers can also take advance money for the goods they have pledged in the company. The
society gives up to 75% of the standard market rate of the amount of goods they have pledged
in the society without any interest.
32
Share and deposit section:
Any member of the society can take the share of the company by providing the Adhar Card
and other information to the section. The amount per share of the company is Rs.500 and Rs.
10 for processing charges. So for Rs. 510 members can buy a share of the company. They will
also give dividend to their shareholders.
The society has fixed deposits where the members can put their money just like banks with an
interest rate of 6-7 percent.
While creating the account in the company farmers should provide details of the NOMINEE
in the case of death of the members the remaining amounts or loans should go to the
nominated person.
Accounts and voucher section:
In the voucher section they give money and advances to the farmers, generate salary slips and
other monetary transaction by creating a ledger account in their software.
In the accounts section all the accounts related works are done including GST filing, creating
and maintaining Balance Sheet and income statements etc.
Every year they have to get their accounts checked by an Auditor and they should pay income
tax according to the statements.
These statements are made public in the general body meeting held twice a year and also they
will publish them in the annual report of the company.
Godown Department:
Weighing:The products the farmers have brought to the company should be weighed first.
So they have put an employee for the weighing of the product. After the checking of the
weight he will decide what type of product is come and gives a bill containing all the
information like total weight, farmers name and account number, date etc. each bag of the
product is given a unique number which helps is storage and easy maintenance of the product.
They will write the information of that unique numer in the bill also. There will be 3 copies of
this bill will be made. One each for farmers, the company and also the APMC. This bill is
called as A-BILL. During weighing a representative from the APMC should be present to
check the weight.
Next this bill details will be recorded in the computer software and through the software the
details will be automatically updated to the account of the account number they have entered.
Storage:The Company has storage facilities for the storage of the products. After weighing
the product will be stored according to the type of product in their respective spaces.
For both farmers’ and traders’ product storage they have made separate space to minimize the
confusion. They have also rented 4 buildings in the nearby premises to help them storage the
stock.
33
Tender:the tender process will happen on Monday and Thursday of every week excluding
government holidays. The farmers will decide whether or not to put their product to the tender
process.
The employee at the section will list out the products that are opted for tender process and
give those information to the APMC officers.
Once the farmers have put their product for tender, the sample of their product along with
other farmers’ product is placed in a big hall.
After all the sample products are placed in the hall, the traders will come and examine the
product and write their price for the product individually and anonymously.
Their price will not be disclosed to anyone. After they have set their price each traders should
go to the APMC portal where they have to enter their price for the specific product
individually.
after all the traders have entered their prices whoever has priced each product at the
higher rate will be allotted the price. Once the product is allotted the trader must and
should buy that product otherwise strict action will be taken against them.
Then the APMC will give the details of the tender allotment process and the employee
at APSCOS will have to inform the farmers about the price of the product they have
gained in the tender process. The farmer will have the freedom to either sell the
product or keep it for future tender. He will have to personally visit the office and
inform whether he wants to sell it or keep it. After the confirmation from the farmer
the trader can take the product from the company after giving the money to the
company. After receiving their brokerage charges, the company will transfer the
amount to the farmers account. The brokerage will taken by the traders and not the
farmers. Farmer will get the same amount as settled in tender process.
After the confirmation the product will be transferred to the respected godown where
it will be stored until the trader will be ready to take it from the company’s godown.
If farmer cancels the tender then it will be placed back where it had been previously
stored.
After the sale is confirmed the farmer will get the details of the sale which will have
how much kilo’s of product he has sold and how much money he has received, in the
form of a bill. This is called as B-BILL.
The traders will get a bill which involves details about their allotted products and
there it will be mentioned how much brokerage,CGST,SGSTad other packing and
labor charges will be added to the product they have allotted will be mentioned. This
is called C-BILL.
After the allotment when the traders want the delivery of the product company will
once again weigh the product to check whether there is any weight loss is there and if
there were any discrepancy occurs then they will add or remove the contents to give
exact weight of products to the traders.
The labour, packing and service charge and all other charges will be applied to traders
only and none of these chargers will be held on to the farmers.
34
FIG 3.1: TENDER PROCESS
SOURCE: AUTHOR
FIG 3.2:BILL
35
FIG 3.3: WEIGHING PROCESS
SOURCE: AUTHOR
36
FIG 3.4: GODOWN
FIG 3.5: FERTILIZERS AND FUNGICIDES
SOURCE: AUTHOR
37
CHAPTER 4:
FINANCIAL PERFORMANCE ANALYSIS
RATIO ANALYSIS:
BALANCE SHEET OF APSCOS
PARTICULARS: 2020-21(IN Rs.) PARTICULARS: 2020-21(IN Rs.)
LIABILITIES ASSETS
SHARE CAPITAL 14916200.00 CASH AT HAND 2205018.00
EMERGENCY FUND 20933789.00 CASH AT BANK 31087111.17
OTHER FUNDS 118079280.31 SHARE MONEY INVESTMENT 2874000.00
MEMBER'S DEPOSITS 158012791.75 OTHER INVESTMENT 55534223.00
CURRENT LIABILITIES 329333169.29 MEMBERS ADVANCES 625141823.00
LOANS 69795749.32 MONEY FROM IT RETURNS 5085739.00
OTHER BORROWINGS 15720200.57 OTHER ASSETS 4241723.97
SAFETY DEPOSIT 50000.00 FIXED ASSTETS(H.O) 33420885.97
EMPLOYEE FUNDS 134450.00 OTHER F.A. 1627278.12
INCOME TAX RESERVES 2799706.00 CLOSING STOCK 14781041.30
OTHER RESERVES 30477269.52 OTHERS1 5197702.52
RESERVES AND
SURPLUS 21060550.29 OTHERS2 116610.00
TOTAL LIABILITIES 781313156.05 TOTAL ASSETS 781313156.05
TABLE 4.1: BALANCE SHEET
P AND L ACCOUNT OF APSCOS
PARTICULARS 2020-21
EXPENSES:
INTEREST 30968128.00
STAFF EPENSES 10052296.00
ADMINITRATIVE
EXPENSES 5044574.69
RESERVES 18615639.00
NET PROFIT 21060550.29
TATAL EXPENSES 85741187.98
INCOME:
SALES 24981499.21
INTEREST 56673162.62
OTHER INCOMES 4086526.15
TOTAL INCOME 85741187.98
TABLE 4.2: PROFIT AND LOSS ACCOUNT
38
𝐂𝐔𝐑𝐑𝐄𝐍𝐓𝐀𝐒𝐒𝐄𝐓𝐒
A. 𝑪𝑼𝑹𝑹𝑬𝑵𝑻𝑹𝑨𝑻𝑰𝑶 = 𝑪𝑼𝑹𝑹𝑬𝑵𝑻𝑳𝑰𝑨𝑩𝑰𝑳𝑰𝑻𝑰𝑬𝑺
𝟑𝟑𝟐𝟗𝟐𝟏𝟐𝟗.𝟏𝟕
= 𝟑𝟐𝟗𝟑𝟑𝟑𝟏𝟔𝟗.𝟐𝟗
CURRENT RATIO = 0.98:1
INTERPRETATION: There are not enough current assets to cover paymens that are due in
company’s current liabilities. This value of ratio is not ideal but it is not too bad as they can
easily recover from this situation.
𝐍𝐄𝐓 𝐒𝐀𝐋𝐄𝐒
B. 𝑰𝑵𝑽𝑬𝑵𝑻𝑶𝑹𝒀 𝑻𝑼𝑹𝑵𝑶𝑽𝑬𝑹𝑹𝑨𝑻𝑰𝑶 = 𝑪𝑳𝑶𝑺𝑰𝑵𝑮 𝑺𝑻𝑶𝑪𝑲
𝟐𝟒𝟗𝟖𝟏𝟒𝟗𝟗.𝟐𝟏
= 𝟏𝟒𝟕𝟖𝟏𝟎𝟒𝟏.𝟑𝟎
𝑰𝑵𝑽𝑬𝑵𝑻𝑶𝑹𝒀 𝑻𝑼𝑹𝑵𝑶𝑽𝑬𝑹𝑹𝑨𝑻𝑰𝑶 = 1.69:1
INTERPRETATION: The company has a very good inventory turnover ratio of 1.69:1.this
ratio indicates that the company can sell their goods quickly. So the sale is good.
𝐍𝐄𝐓 𝐒𝐀𝐋𝐄𝐒
C. 𝑨𝑺𝑺𝑬𝑻 𝑻𝑼𝑹𝑵𝑶𝑽𝑬𝑹𝑹𝑨𝑻𝑰𝑶 = 𝑻𝑶𝑻𝑨𝑳 𝑨𝑺𝑺𝑬𝑻𝑺
= 𝟐𝟒𝟗𝟖𝟏𝟒𝟗𝟗.𝟐𝟏
𝟕𝟖𝟏𝟑𝟏𝟓𝟔.𝟎𝟓
𝑨𝑺𝑺𝑬𝑻 𝑻𝑼𝑹𝑵𝑶𝑽𝑬𝑹𝑹𝑨𝑻𝑰𝑶 = 3.19:1
INTERPRETATION: RATIO IS 3.19:1 which means for every Rs.1 of asset, the company is
able to sell Rs.3 amount of goods which is very good in the retail sector.
39
𝐍𝐄𝐓 𝐈𝐍𝐂𝐎𝐌𝐄
D. 𝑵𝑬𝑻 𝑷𝑹𝑶𝑭𝑰𝑻 𝑴𝑨𝑹𝑮𝑰𝑵 𝑹𝑨𝑻𝑰𝑶 = 𝑵𝑬𝑻 𝑺𝑨𝑳𝑬𝑺
24981499.21
=𝟖𝟓𝟕𝟒𝟏𝟏𝟖𝟕.𝟗𝟖
𝑵𝑬𝑻 𝑷𝑹𝑶𝑭𝑰𝑻 𝑴𝑨𝑹𝑮𝑰𝑵 𝑹𝑨𝑻𝑰𝑶 = 0.29:1

INTERPRETATION: The company has a net profit ratio of 29.1% which is a very good ratio. It
means for every 1Rs. Goods sold the company make 0.29Rs, of profit.
𝐓𝐎𝐓𝐀𝐋 𝐃𝐄𝐁𝐓
E. 𝑫𝑬𝑩𝑻 𝑹𝑨𝑻𝑰𝑶 = 𝑻𝑶𝑻𝑨𝑳 𝑨𝑺𝑺𝑬𝑻𝑺
𝟔𝟗𝟕𝟗𝟓𝟕𝟒𝟗.𝟑𝟐
= 𝟕𝟖𝟏𝟑𝟏𝟑𝟏𝟓𝟔.𝟎𝟓
DEBT RATIO = 0.08:1
INTERPRETATION: The company has a debt ratio of 8% which is a very good sign for the
company and the company is in a very good and stable financial health.
40
TREND ANALYSIS:
P AND L ACCOUNT OF APSCOS LTD

TREND ANALYSIS
PARTICULARS 2018-19 % 2019-20 % 2020-21 %
EXPENSES
24940843.0 100.0 27842570.0 111.6 30968128.0 124.1
INTEREST 0 0 0 3 0 7
100.0 11532267.0 122.3 10052296.0 106.6
STAFF EXPENSES 9429278.00 0 0 0 0 1
100.0
ADMINISTRATIVE EXPENSES 5188474.16 0 4251808.49 81.95 5044574.69 97.23
27035938.0 100.0 18183695.0 18615639.0
RESERVES 0 0 0 67.26 0 68.86
100.0 21060550.2 259.2
NET PROFIT 8124412.21 0 8112260.04 99.85 9 3
74718945.3 100.0 69922600.5 85741187.9 114.7
TATAL EXPENSES 7 0 3 93.58 8 5
INCOME
21884967.0 100.0 17819343.0 24981499.2 114.1
SALES 0 0 6 81.42 1 5
48549640.3 100.0 48257837.7 56673162.6 116.7
INTEREST 7 0 8 99.40 2 3
100.0
OTHER INCOMES 4284338.00 0 3845419.69 89.76 4086526.15 95.38
74718945.3 100.0 69922600.5 85741187.9 114.7
TOTAL INCOME 7 0 3 93.58 8 5
TABLE 4.3: TREND ANALYSIS OF A AND L ACCOUNT
INTERPRETATION:
 The company’s interest payable has been increased over the 3 years which means
that the company is making loans and debts for development purposes.
 Company’s staff related expenses as not varied considerably. So we can interpret that
there is not much employee turnover in the company. the employee benefit schemes
are properly managed and salaries are paid accordingly.
 Total expense has been increased from Rs.74718945.37 to Rs.85741187.98 which

means that the company is spending money on the growth and development of itself.
 Total sales of the company war reduced to 81% in 2019-20 considered to its previous
year, but in 2020-21 the sales have increased to 114.15% compared to 2018-19
which is a very good sign for the company.
 Net profit has been increased to 259% in 2020-21 when compared to 2018-19 which
is a very good sign.
41
BALANCE SHEET OF APSCOS LTD

TREND ANALYSIS
PARTICULARS 2018-19 % 2019-20 % 2020-21 %
LIABILITIES
SHARE CAPITAL 12724700.00 100.00 13893800.00 109.19 14916200.00 117.22
EMERGENCY FUND 16719110.00 100.00 18823870.00 112.59 20933789.00 125.21
OTHER FUNDS 67259331.06 100.00 96601263.27 143.63 118079280.31 175.56
MEMBER'S DEPOSITS 134071334.87 100.00 144201179.87 107.56 158012791.75 117.86
CURRENT LIABILITIES 228026526.24 100.00 257762781.45 113.04 329333169.29 144.43
LOANS 78364420.74 100.00 49889383.62 63.66 69795749.32 89.07
OTHER BORROWINGS 11798605.44 100.00 13472362.41 114.19 15720200.57 133.24
SAFETY DEPOSIT 50000.00 100.00 50000.00 100.00 50000.00 100.00
EMPLOYEE FUNDS 156335.90 100.00 143672.90 91.90 134450.00 86.00
INCOME TAX RESERVED 6291285.00 100.00 7250560.00 115.25 2799706.00 44.50
OTHER RESERVED 41985669.52 100.00 30977269.52 73.78 30477269.52 72.59
RESERVES AND SURPLUS 8124412.21 100.00 8112260.04 99.85 21060550.29 259.23
TOTAL LIABILITIES 605571730.98 100.00 641178403.08 105.88 781313156.05 129.02
ASSETS
CASH AT HAND 2053909.00 100.00 1448602.48 70.53 2205018.00 107.36
CASH AT BANK 48094027.35 100.00 43465507.90 90.38 31087111.17 64.64
SHARE MONEY INVESTMENT 2814000.00 100.00 2874000.00 102.13 2874000.00 102.13
OTHER INVESTMENT 57777630.00 100.00 51728051.00 89.53 55534223.00 96.12
MEMBERS ADVANCES 449369272.41 100.00 486486943.00 108.26 625141823.00 139.12
MONEY FROM IT RETURNS 6291285.00 100.00 7250560.00 115.25 5085739.00 80.84
OTHER ASSETS 1923271.75 100.00 2501016.49 130.04 4241723.97 220.55
FIXED ASSTETS(H.O) 27903738.28 100.00 31783465.40 113.90 33420885.97 119.77
OTHER F.A. 1641456.67 100.00 1627971.55 99.18 1627278.12 99.14
CLOSING STOCK 2388828.00 100.00 6697972.74 280.39 14781041.30 618.76
OTHERS 5197702.52 100.00 5197702.52 100.00 5197702.52 100.00
116610.00 100.00 116610.00 100.00 116610.00 100.00
TOTAL ASSETS 605571730.98 100.00 641178403.08 105.88 781313156.05 129.02
TABLE 4.4: TREND ANALYSIS OF BALANCE SHEET
INTERPRETATION:
42
 The share capital of the company has been increased by 17.22% when compared to
2018-19 which is a good sign as it reflects more members are joining and investing in
the company.
 The current liabilities of the company have increased by 44.43% in 2020-21 when
compared to 2018-19. It may be a bad sign for the company.
 The loans taken by the company has been reduced by 11% in 2020-21 when
compared to 2018-19 which is a very good sign. It effects that the company is in very
healthy financial condition.
 Advance loans given to the farmers has been increased by 39% which is a very good
sign of the company as it indicates that more people have come to the company for
the sale of their product which further result in the growth of the company.
 Closing stock has been increased exponentially in 2020-21 when compared to

previous years this also states that the farmers have believed in the company and they
are ready to sell their products in this company only.
43
CHAPTER 5:
PROBLEM MAPPING & SOLVING

IDENTIFICATION OF PROBLEM:
The main area of concern or the farmers of arecanut are fluctuating market price for
the product, storage facilities for the grown product, confusions regarding probable
ban of arecanut products and many diseases occurring to trees and nuts of areca and
pepper.
GATHERING DATA AND PROBLEM MAPPING:

Data is gathered by interviewing the farmers and local agricultural bodies on what their
problem is regarding their crop. The collection of written documents regarding the data
collection was difficult due to lack of literacy in the farmers and time constraints.
PROBLEM MAPPING:
Problem mapping is a method that analyses a main problem by evaluating related
ideas and determining how each other connect. It represents these connections
visually in the form of a map and provides the foundation for solving recognized
issues systematically.
The farmers are spending more money on labor charges, diseases to plants and
arecanut and fluctuating market price.
Farmers are shortening their profit margin as many diseases will come to the trees and
they have to spend more on fertilizers, mixtures and fungicide repellents.
PROCESSING OF EDIBLE SEED:
Mainly within the field of areca processing problems arises even before harvesting
and ends before it's marketed. Commercial processing are done by the intermediaries
involved within the secondary market. The methods of preparation of nuts to be
sold within the market is that the material of processing. the
foremost issues associated with processing aspect within the district comprises the
subsequent elements.
1. HARVESTING: Besides climate conditions, the time of harvesting betel

nut determines the standard of nuts to be prepared. When red variety nuts are to be
prepared, it's plucked while the husk continues to be green or at the gentle stage. just
in case of matured nuts, the colour of the husk indicates the stage of maturity. The
bunches are plucked when the colour of the husk becomes pinkish red. When matured
nuts are plucked, it may be used for preparing white variety (Chali). By October end,
ripening of nut starts and it lasts up by the top of January, just in case of coastal
44
regions of the District. However, in Malnad regions, this era is from November to
February end.
2. PLUCKING: The bunches of betel nut appear near the highest near leaves.
Climbing up an areca palm and plucking the bunches is taken into account to be a
special art, skill and technique. Only specialized and experienced labors can perform
this task. One climber can cater to around 300 to 400 areca trees in a very day.
Generally, the climber takes with him an extended rope and after cutting the bunch
smoothly keeps the bunch on the rope from the highest and lets it come down, where
another person holds the rope at the another end and collects the bunch so coming
down. Long bamboo hook is commonly accustomed draw the palms together for
cutting the bunches without climbing trees. He bends and pulls other tree with the
assistance of bamboo hook and leaps thereon and similarly removes the bunches
from the opposite trees to which he has access. Generally, it's a practice that climber
will test the nuts whether it's matured or not before exterminating the bunches.
3. PEELING: the following main work under this process is husking and curing.
Trained women coolies are employed for husking. They peel areca with the
assistance of special instrument made for this purpose. An ironed sharp "L" shaped
bend knife which is fixed on wooden piece is employed. just in case of tendered nuts,
husking process is under taken soon after the harvesting and will be finished within 4-
5 days. If it's delayed quality will suffer. When white variety is to be prepared,
husking activity are going to be carried after putting areca in sun light for burning
about 40-45 days. Now a days farmers face problem of getting specialized labors for
this work. An Experienced labor can get average 4000 nuts peeled each day. Wage
rate is usually fixed on the amount of nuts husked in thousands and per K.G of nuts
husked. Current husking rate is about 50-60 per thousand or Rs 10 per K.G as practice
followed in several region. Generally, they face the matter of getting skilled labors to
induce this work done at the correct time. Further, climate variations during the
season will worsen the matter of curing.
4. BOILING: The tender nuts are boiled soon after they're husked during a copper
vessel for duration of an hour. While boiling nuts the foremost common practice
followed to check boiling status is that when the nuts loses its eye, it's alleged to be
understood that it's fully boiled. so as to boost the colour and therefore the quality of
the kernels various organic and inorganic ingredients like barks of teak tree, lime,
betel leaf, oils etc., are added to the water while boiling. When the nuts are fully
boiled, they're taken out from the vessel by means of perforated can
dipper(TogaruChippu) and floured to the bamboo basket. This process requires
certain quantum of firewood for boiling. Arrangement of required firewood are made
locally by farmers.
45
5.DRYING AND GRADING : Boiled kernels are dried on a special bamboo or

plastic mats about seven to eight days under the sun light by spreading in open yard or
on a raised platform created before of the grower’s house called ‘adikeatta’.for the
said purpose. each day within the morning the nuts are spread to urge sufficient
sunlight and within the evening spread nuts are collected in heap and covered by the
gunny bag, plastic or areca leaf sheaths to guard it from the dews during in winter
nights. After having repeated this process about seven to eight days, the nuts
are prepare to be used. Now, nuts are sorted and graded in to different varieties called
‘Aapi’, (chikani), ‘Rashi’, ‘Bette’, ‘Kempugotu’, ‘Ajagigai’, and ‘Kolekempu’ or
‘Kempukoka’. kettabette etc. supported size, taste, rate, durability etc. 'Bette' variety
requiring sun burn over 12 days because the size is big.
The fully ripened nuts, are merely dried soon after the harvest within the sun light
about 40-45 days (depending upon the supply of sunlight) without removing the husk.
Before drying, it's called as ‘Sippegotu’ after drying it becomes ‘Dry Chali’ or after
extracting the outer cover or wrapper (husk) nuts becomes ‘Chaali’. Some
farmers within the District wait a minimum of eight to 10 days after the harvest to dry
it within the sun light as they believe that its weight and quality will improve by doing
so. Farmers follow the practice of drying areca bunches directly without separating
nuts from the bunch, which are kept on the roofs of the house or on the ground.
However, majority farmers separate nuts from the bunches and spread it over the
ground or ‘atta’. As nuts to receive sunlight from all the size they're reversed or re-
spread after every 10 or 15 days from first spread. in order that quality nuts may
be obtained. There after dried nuts are husked and dry kernels are sorted and graded in
to different varieties called ‘Chaali’, ‘Bilegotu’, ‘Chalikempu’, ‘Gattikoka’, and
Aragere, ‘koka’. etc., on basis of size, taste, rate, durability etc.
6. COLORING : After boiling of edible seed during a copper vessel, the water
remained within the vessel isn't get wasted. in fact, it's re-boiled for a pair of
hours and small thick liquid is ready and now it's called tannin or ‘Chogaru’. The
sorted and graded tender nuts are soaked or coated with this tannin to induce a glossy
and attractive red appearance. This process is named ‘Coloring’. After coloring, nuts
are kept again under the sun light about 4-5 hours and within the already
dark they'll be packed in gunny bags. This chogaru acts like medicine to stay areca for
long duration within the style of stock. Now it's ready for marketing. Now a- days
buyers have an interest in non- colored nuts as they process it again into different
variety and undertake coloring activity. However, coloring isn't done to ripen nuts or
chaali variety. Only ‘chalikempu’ variety is colored to draw in the marketer. Chaali is
fumigated to stay within the type of stock for long duration and to safeguard it from
affecting creatures.
46
7. PREPARATION OF FACTORY VARIETY: Specially within the coastal region,

the harvested ripe nuts are stored in pits or steeped in water for consumption during
off season. This variety has considerable demand within the local market and in
Bombay market still. After storing up to a period of 1 year it will be sold within
the market. this kind of processing is finished only within the coastal areas.
PROBLEM ASSOCIATED WITH THE WAY OF SELLING:
1. PACKING: After the completion of drying and grading process, tendered nuts are ready for
marketing. it'll be packed in gunny and plastic bags and top end mouth of the baggage are
stitched or tied with rope. No special packing and branding is employed when the crop is
prepared available within the primary market.
2. STORING: As regards processed betel nut is worried, after packing process storage
becomes an inevitable marketing function. As they have to be stored within the farmers house
itself or within the society go-downs. Both kind of nuts are stored during a single or double
plastic or gunny bags and kept in dry rooms in anticipation of high rates. The nuts so
stored is protected against insects by sulfur fumigation or by using aluminum phosphate
tablets. APSCOS like societies are providing storage to the farmers. Whenever upward trend
prevails within the sell acts as a boon. just in case rates come down even after storing, it
becomes bane to the farmers.
3. ASSEMBLING OF NUTS: The long chain of intermediaries and ignorance of the growers
are the most causes for this state of affairs. The growers within the study area didn't know
commercial grading. Moreover, they feel that it's not necessary to grade commercially when
quantity sold is in small volume. Therefore, the producers sell the edible seed by doing
traditional grading within the primary market. Now a days, it's practiced that the producer can
sell produces in immature form and sundried ripe nuts state, boiled and dried nuts, (with or
without grading) and outright sale of crops (crop contracting). Therefore, the further
processing is taken by the assemblers.
CROP CONTRACTING:
Within the 1990’s new system called "crop contracting" emerged within the market
As a consequence, ‘Crop Contractor’ or "kheni" have entered the market in a
very unique way. Before harvesting they meet the farmers and talk about the selling
rate of crop. If the rate is accepted, they take the crop after effecting the payment as
per the deal and undertake processing work. Then they sell within the open market
47
where it fetches an honest rate. In some cases big landlords of the village get in for
such business and accept crop contract from small farmers and again they sell it
through Co-operative societies. At the outset it looks as if smooth sailing for
little farmers and people who cannot undertake harvesting themselves due to lack of
your time and pre-occupation within the other professions. one more reason for going
in crop contract agreement is that severe problems of seasonal and casual labors.
Some farmers want to induce obviate tensions from market fluctuations and other
problems of processing and marketing. However, it's not so simple as imagined. At
one side, it makes the farmer lazy and will cause loss to him. On the opposite side
major effect of crop contract may be a stumbling blow to co-operative
movement within the District. Because, majority of the ‘Crop Contractors’ sell
the edible seed on to the last word consumers or final traders without bill. If second
sale is inspired, it ultimately lead to loss to the govt. within the variety of excise tax,
loss to the A.P.M.C. These trends were developed after 1990 because of several
reasons. Gradually farmers started selling by embracing this new channel of
selling although they know losses and demerits of the system.
PRACTICES OF SECOND SALE:

Another major problem of areca market within the District is practice of second sales.
Unlike crop contractors, traders who have involved in second sales are really a
tentative puff for the event of market. some of injury caused by traders through
second sale is quite that of crop contractors. Second sale has adversely affected co-
operative movement and people agencies do authenticate business are not following
such norms of market.
Why does the second sale take place?
Because traders attract the farmers by offering a bit more amount than the
prevailing value within the regulated market. within the process by violating the
norms and practices of promoting, traders save Rs. 600-800 per quintal of areca on a
mean and just they sacrifice Rs.200/- to Rs.250/-. Enchantment of bad practices of the
trader, greediness of the farmers, support extended by transport operators and helpless
situation of the APMCS are practically responsible conditions for this phenomena.
Practice of second sale is witnessed heavily in Honnavar, Bhatkal and Kumta markets.
Therefore, in coastal region people are worried, who really wants to enjoy the
advantages of co-operation and stability in areca price. Comparatively very less
second sale is seen Malnad region. However, the credit linked marketing, outright
purchase system, storage, finance facilities followed by the co-operative societies,
transport facilities provided from the village societies are contributing factors to
form co-operation a hit in these area. For the progress and prospects of areca market is
anxious, immediate attention is to run to curb the second sale and crop contracting
48
practice.
problems with GUTKHA BANNING.
Areca is that the main ingredient for gutkha and pan masala. Areca marketing has
direct reference to gutkha production. Since gutkha and pan masala has occupied the
place in tobacco market, issues regarding gutkha ban now and then create incredible
problems on the growers front. National level lobby is prevailing to reduce the
consumption of gutkha by banning it. Since it cause severe Socio-economic problem
of the country, some authorities has shown little interest in banning the gutkha.
Nevertheless, areca farmers agree that gutkha consumption is bad for health, they
need concern over the social problems. But argument is that areca
consumption isn't bad for health, since people are consuming it from the vedic
period. it's nutritional value and digestive feature when aware of a
selected consumption pattern. Gutkha is taken into account causing health problems
as areca is related to tobacco and other chemicals. Therefore, issue of gutkha has
become very pertinent, sensitive question to the farmers of U.K. District. it's a
true challenge to the govt., an issue of survival of areca dependants. so as to avoid
wasting farmers from the hanging sword of gutkha banning, there's a desire of
recent thinking in a very unique thanks to solve the issues of areca marketing and be
told the new avenues, possibilities and potentialities of areca marketing of U.K.
District particularly.
Red variety edible seed of Malnad region has good demand in local markets of
Karnataka, Bombay, Nagpur and Lucknow. White variety betel nut of the District has
good demand in Maharashtra and Gujarat markets. Farmers of the District don't have
fundamental knowledge of secondary marketing. Hence, they're evidencing the new
challenges in terms of contract farming, practice of second sales and hanging sword of
gutkha banning.
Majority of the farmers didn't keep trading relationship with the shopkeepers. Their
contact was limited. they're not able to take risk and wanted to air the safer side by
selling through co-operative societies. Shopkeepers are panvalas or distributors and
their requirement is a smaller amount. Moreover, among the farmers community only
a few of them were engaged in selling areca to the final word consumers. However,
lack of entrepreneurship, less contact, interest, negative attitude, intension of secured
payment, requirement of giant amount of capital for trading and fewer profit are the
factors chargeable for this trend.
LABOUR PROBLEMS AND WAGE RATE

Unlike cultivation, harvesting, peeling and processing functions, areca marketing
requires differing types of labors like skilled, semi-skilled, unskilled, female, male,
seasonal and regular. Therefore, problems of availability and non availability of such
labors as and when required will cause certain problems. Timely
harvesting concerns areca tree climber to try and do his job in time. The delayed
49
harvest ends up in percentage of red and white variety to undergo a change. The
harvested areca must be peeled, boiled and put to sun burning as early to avoid
expected losses. Labor for these works don't seem to be available in sufficient number
in time and therefore the coolie demanded by them is adequate that of a software
employee now a days. Machines to perform these works are under progress but not
developed to the satisfactory extent. we will quote several reasons for non availability
of labor. Tree climbing is risky job, migration of youth towards urban, lack of interest
and capability among farmers to adopt new technique (lack of buying power ), low
rate of agriculture commodities within the market etc.
PROBLEM RELATED TO PRODUCTION:
1. COST OF CULTIVATION:
In Today's environment to start out areca cultivation one should have patience,
commitment, perseverance, team of labors and skill to take a position lakhs of rupees.
Preparation of land layout for planting, fencing, digging and opening of drains,cost of
areca seeds, fertilizers, irrigation materials and expense of plant protection measures,
crop operations, cleaning of drains, application of fresh soil and management of
intercrops are the foremost components of cost involved within the cultivation
of edible seed. Now a days areca cultivation by buying plain
land necessitate substantial investment.
2.PESTS CAUSING MAJOR CROP LOSS:

Areca nut cultivation within the study area is subject to disturbance by several insects
and non-insects. Insects could infest all parts of the areca palm from the basis to areca
fruits. The most important pests causing considerable crop loss to the farmers will
comprise of Mites, Spindle bugs, Caterpillars and Root grubbers. These pests are
either seasonal or persistent with the crop. Non insect pests cause fall of Inflorescence
and leaves. except this, other minor Nursery pests, trunk feeders, Leaf feeders and
tender nut feeders are considered to be faltering chunk within the course of
production.
3. DISEASES:
Areca nut palm within the District is reported to be stricken by variety of diseases
during different stages of its growth and development. ‘Around 20 kinds of diseases
causing varying degrees of damages to the tree are discovered and identified in India’.
However, in the District the subsequent major nine styles of diseases are reported to
be to blame for the downfall within the process of production activity.
- Yellow leaf diseases (YLD)or ‘Chandiroga’.
- Mahali (‘Kole roga’).
50
- the ‘Anaberoga’ also called as mushroom disease

- Inflorescence death and batten flaking.
- flower or bud decompose problem.
- The spring disease
- Sun scorch or Stem breaking.
- Nut splitting disease
- Mycosis problem
4. THE WATER AND IRRIGATION RELATED DIFFICULTIES:

the district is wealthy in river. Still, in recent years farmers face water problem here
and there thanks to lack of channelized installation system and erratic rain effect.
Moreover, reduced level of H2O has added fuel to the burning issues. Though there
are many ponds, lakes, water reservoirs within the high acreage, they're with stuffed
with mud, because of improper maintenance, negative attitude shown by authorities
concerned or organized body of farmers and individual farmers to wash up the water
sources for its utilization. Farmers have to invest lakhs of rupees to irrigate land.
5.EFFECTS OF DEFORESTATION, DWINDLING AND DWINING OF GREEN

FORESTS:
Geographically, Shimogais a district of 10,29,679 hectare, out of which 80 percent is
forest land and only one,38,711 hectare is available for cultivation. But today green
and gleaming compact of dense forest depicts the dwining scene because of power
projects and other projects within the name of development. Finally this effect has
made bad impact on areca farming. It might be seen from the attack of
untamed animals and birds, crowd within the areca garden, reduction in water system,
increased temperature, decreasing rain etc., this providing green leaf manure has
become costly for the farmers, it's badly damaged the yield.
6.LACK OF LABOUR SAVING APPLIANCES :

Till today, areca cultivation has maintained its unique nature of labor intensive
system. Problems of labor has created the need and necessity of labor saving
appliances. However, these aren't available to the required extent, which has posed
problems over production.
7. STABILITY IN PRODUCTION:
Quantum of yield differs from place to put within the District. On the contrary, yield
rate isn't stable thanks to climate variations, rain, diseases and pests. in order
that growers will need to face matters of instability within the production. This trend
will have impinging impact on the socio-economic development of the growers.
51
8. DIFFICULTY IN GROWING INTERCROPS:

Over the amount of decades,.the District has maintained its traditional popularity in producing
intercrops like Pepper, Cardamom, Banana, Betel vine, and coconut. But, since fifteen
years it became difficult to grow these intercrops because of various diseases, erratic
rate behavior, disturbance caused by the animals, birds attack etc. Therefore, failure of
inter crops have accelerated the issues of areca gardeners having the adverse effect
over yield on the one hand and threatening economic life on the opposite.
9. CROP MANAGEMENT AND PROTECTION:

Unlike other agricultural crops areca is to be maintained properly to enjoy the
advantages of higher yielding. it's to be protected in the least the stages before, during
and after the harvest from the natural calamities, pest and other diseases, animals,
labor, technical, theft etc., Hence thought to be hard to grow and maintain.
FEASIBLE SOLUTION:
Local agricultural bodies should work on providing better price for the crop of the farmers by
solving the irregularities in the availability of the product in the market.
Government should provide discounts to farmers on agricultural products like ladder,

fartilizers, fungicides, cattle feeds and should fix a price for labour charge for the agricultural
activities.
Agricultural bodies should provide proper storage facilities to the products of the farmers
without any charges.
Farmers should be educated about the maintenance and controlling of various diseases that
are happening to the crops and they should be made aware what fertilizers they should use for
what kind of diseases and how to use them.
52
VARIETIES OF ARACANUT PRODUCT
PEST DISEASES
53
YELLOW LEAF DISEASE
SOURCE: https://www.tssindia.in
54
CHAPTER 6:
FINDINGS, SUGGESTIONS AND LEARNINGS

FINDINGS:
During the internship time, I learned that the arecanut is heavily fluctuating market. Normal
people cannot predict the prices and demand of the product at a particular time precisely.
There are a lot of problems the arecanut farmers are facing like water irrigation, diseases,
fluctuating market, increasing labour charges etc.
The cooperative societies have been helping the farmers to provide them the marketplace and
the opportunity to sell their product at a considerable good price. They are also providing
them with loans and advances which are very essential as they are hard to get short term loans
and advances from banks and other financial institution. We can say that the cooperative
societies are helping the farmers financially in a very effective manner.
SUGGESTION:
The company should focus on getting the paper works as little as possible and shift to
digitized method as it will be easy to access and maintain the data of the farmers and the
company likewise.
There is a lack of literacy in the farmers and the cooperative bodies should focus on giving
proper knowledge and literacy to them regarding their crop as well as financially
55
LEARNINGS:
I had a good time working at APSCOS Ltd since it gave me insight into real-world
circumstances. I gained knowledge of the organization's operations and the role the caching
department has in the overall success of the company.
I had sufficient exposure during the organisation study that lasted one and a half months
concerning the successful operation of an organisation. The specific organisation has made it
clear to me that cooperative societies can also be run as a corporation profitably. Many
cooperative organisations Fail due to poor administration, but they have to look at APSCOS
as they have many things to learn from this company. After demonetization and pandemic,
many cooperatives have become default but APSCOS is standing firm and growing like never
before. The Organization has made it easier for me to comprehend how to promote
agricultural products, both goods and services.
In accordance with government regulations, cooperative groups must preserve their

accounting records in their native tongue. Despite my familiarity with the local tongue, I
found it quite difficult to comprehend the financial jargon. However, it was essential to obtain
a comprehensive image of the organisation. I also learn how to use equipment, raw materials,
a packing system, a payment system, and other practical aspects of manufacturing company
operations.
56
REFERENCES:
1. https://www.ibef.org/research/case-study/success-of-cooperatives-in-
india
2. https://www.tssindia.com/
3. https://www.mindtools.com/pages/article/newSTR_91.htm
4. https://www.investopedia.com/terms/p/porter.asp
5. https://coops4dev.coop/en/4devasia/india
6. https://mamcos.info/en/mamcos-areca-rates/
7. https://campco.org/
57
ANNEXURE
58
59
BALANCE SHEET
PARTICULARS 2018-19 2019-20 2020-21

LIABILITIES
SHARE CAPITAL 12724700.00 13893800.00 14916200.00
EMERGENCY FUND 16719110.00 18823870.00 20933789.00
OTHER FUNDS 67259331.06 96601263.27 118079280.31
MEMBER'S DEPOSITS 134071334.87 144201179.87 158012791.75
CURRENT LIABILITIES 228026526.24 257762781.45 329333169.29
LOANS 78364420.74 49889383.62 69795749.32
OTHER BORROWINGS 11798605.44 13472362.41 15720200.57
SAFETY DEPOSIT 50000.00 50000.00 50000.00
EMPLOYEE FUNDS 156335.90 143672.90 134450.00
INCOME TAX RESERVES 6291285.00 7250560.00 2799706.00
OTHER RESERVES 41985669.52 30977269.52 30477269.52
RESERVES AND SURPLUS 8124412.21 8112260.04 21060550.29
TOTAL LIABILITIES 605571730.98 641178403.08 781313156.05
ASSETS
CASH AT HAND 2053909.00 1448602.48 2205018.00
CASH AT BANK 48094027.35 43465507.90 31087111.17
SHARE MONEY INVESTMENT 2814000.00 2874000.00 2874000.00
OTHER INVESTMENT 57777630.00 51728051.00 55534223.00
MEMBERS ADVANCES 449369272.41 486486943.00 625141823.00
MONEY FROM IT RETURNS 6291285.00 7250560.00 5085739.00
OTHER ASSETS 1923271.75 2501016.49 4241723.97
FIXED ASSTETS(H.O) 27903738.28 31783465.40 33420885.97
OTHER F.A. 1641456.67 1627971.55 1627278.12
CLOSING STOCK 2388828.00 6697972.74 14781041.30
OTHERS1 5197702.52 5197702.52 5197702.52
OTHERS2 116610.00 116610.00 116610.00
TOTAL ASSETS 605571730.98 641178403.08 781313156.05
60
P AND L ACCOUNT
PARTICULARS 2018-19 2019-20 2020-21

EXPENSES
INTEREST 24940843.00 27842570.00 30968128.00
STAFF EPENSES 9429278.00 11532267.00 10052296.00
ADMINISTRATIVE EXPENSES 5188474.16 4251808.49 5044574.69
RESERVES 27035938.00 18183695.00 18615639.00
NET PROFIT 8124412.21 8112260.04 21060550.29
TATAL EXPENSES 74718945.37 69922600.53 85741187.98
INCOME
SALES 21884967.00 17819343.06 24981499.21
INTEREST 48549640.37 48257837.78 56673162.62
OTHER INCOMES 4284338.00 3845419.69 4086526.15
TOTAL INCOME 74718945.37 69922600.53 85741187.98
61
ATTENDANCE SHEET
62
63
BUSINESS IMMERSION PROGRAMME 2022
WEEKLY WORK DONE REPORT
Name of the student: SHREYAS G A
Register Number RVIM21MBA158
Internal Guide Name: PROF. CHANDRAN A
External Guide Name: CHIDANANDA M
Name of the ARECANUT PROCESSING AND SALES CO-OPERATIVE SOCIETY LTD,

Organization SAGAR
Period of the weekly 20 JUNE TO 25 JUNE

report:
Progress during the In the first week of the internship the mentor introduced me to all the different
Current Week: departments of the company. I worked at the finance and account section in the
week and studied the annual report and other aspects of the company.
Proposed work to be Next week I should visit the trading and maintenance section to learn how the
Carried on during the tender or bidding process happens.
following week:
Signature of the Student Signature of Guide

64

Organization SAGAR
Period of the weekly 26 JUNE TO 2 JULY

report:
Progress during the This week I learned about the bidding process in the company and also observed
Current Week: how the maintenance of stock is handled by the employees.
Proposed work to be I have to go to the voucher section I the company and learn how to generate salary
Carried on during the slips and other cash related items
following week:
65


Organization SAGAR
Period of the weekly 4 JULY TO 9 JULY

report:
Progress during the During the week I worked at voucher section and learnt how to give slaary slips,
Current Week: vouchers and other monetary facilities to the customers. I also worked at share and
deposit section and assisted the employees in creating new accounts and receiving
the money deposited by the customers.
Proposed work to be Next week the proposed work is to observe and work with employees of the traders
Carried on during the section.
following week:
66


Organization SAGAR

report:
Progress during the This week I worked with the traders section and helped the traders with the
Current Week: receiving of cheque's, delivering goods and preparation of E-WAY bill.
Proposed work to be Next week I have to go to the tender section to observe how the delivery of goods
Carried on during the will take place after traders have bought their products.
following week:

67


Organization SAGAR

report:
Progress during the Assisted the employees in delivering the goods to the traders and learnt about the
Current Week: various taxes, GST and commission to be paid by the traders after the bidding.
Proposed work to be In the trading section, I have to study more about how the product is presented and
Carried on during the what are the process to follow during tender process.
following week:
68


Organization SAGAR

report:
Progress during the This week i had worked at the tender and bidding section. Assisted the employees
Current Week: to prepare the areca product to be presented at the bidding place.
Proposed work to be -
Carried on during the
following week:
69
INTERIM REPORT
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A REPORT ON BUSINESS IMMERSION

ARECANUT PROCESSING AND SALES CO-OPERATIVE SOCIETY, SAGAR

SUBMITTED TO R V INSTITUTE OF MANAGEMENT (AUTONOMOUS INSTITUTION AFFILIATED

MASTER OF BUSINESS ADMINISTRATION

REG. NO: P18FW21M0023

UNDER THE GUIDANCE OF

CHIDANANDA M PROF. CHANDRAN A

SUPERVISOR ASSISTANT PROFESSOR

RASHTREEYA SIKSHANA SAMITHI TRUST®

I, hereby declare that the Report on Business Immersion at ARECANUT

Place: Bangalore Reg. No: P18FW21M0023

Any achievement, be it scholastic or otherwise does not depend solely on the

This is to certify that SHREYAS G A bearing Register Number

This Business Immersion Report has not been submitted to any

Date: PROF. A CHANDRAN

1 ABOUT THE FIRM 1-16

2 ABOUT THE INDUSTRY 17-31

3 ABOUT THE FUNCTIONAL AREAS 32-38

4 FINANCIAL PERFORMANCE ANALYSIS 39-44

5 PROBLEM MAPPING AND SOLVING 45-54

6 FINDINGS, SUGGESTIONS AND LEARNINGS 55-56

FIGURE NO. DESCRIPTION PAGE NO.

1.2 SWOT ANALYSIS 6

1.3 MCKINSEY 7S MODEL 8

1.4 SOFTWARE INTERFACE 12

1.5 CHIPPSAPP USER MENU 12

1.7, 1.8 COMPANY BUILDING 16

2.1 PORTER’S FIVE FORCE MODEL 27

3.1 TENDER PROCESS 36

3.3 WEIGHING PROCESS 37

5.1 VARIETIES OF ARECANUT PRODUCT 52

5.2 PEST DISEASES 53

5.3 YELLOW LEAF DISEASE 53

TABLE NO. DESCRIPTION PAGE NO.

1.2 BOARD OF DIRECTORS 4

2.1 SECOR-WISE NUMBERS OF 29

4.1 BALANCE SHEET 39

4.2 P AND L ACCOUNT 39

4.3 TREND ANALYSIS OF P AND L ACCOUNT 42

4.4 TREND ANALYSIS OF BALANCE SHEET 43

TABLE NO. DESCRIPTION PAGENO.

2.1 SECTOR-WISE NUMBERS OF 30

Brief history of the firm:

Arecanut Processing And Sales Cooperative Society, Sagar (APSCOS) is a co-operative

The society has its branches in Nittur, Tumari and Hosanagara.

At present the president of the company is Mr. K.M.Suryanarayana and

Operational area of business:

Main Branch Sagar

The company gives a compensation of Rs.100000 to the layman of farmers if anything

 Society was registered on 09-11-1973.

 Started its activity on 03-12-1973.

 New branch was opened at Nittur in 1978.

 Another branch opened at Hosanagar in 1994.

 New branch was opened at Tuari in 2013.

 Opened paper plant in 1976.

 Opened a new supermarket in Sagar in 2017.

MR. B A INDUDHAR DIRECTOR

MR. K S SUBRAO DIRECTOR

MR. P N SUBRAO DIRECTOR